The Verkhovna Rada of Ukraine has passed a law on the mandatory use of liquid biofuels (bio-components) in the transport sector (№ 3769-IX dated June 4, 2024). Alina Potapovych, a member of the Legal Affairs Council of the Fuel and Energy Business Association (FEB), explains the essence and implications of the law.

This law introduces amendments to the following Ukrainian laws:

1. The Law of Ukraine “On Alternative Fuels” (Bulletin of the Verkhovna Rada of Ukraine, 2000, № 12, Article 94, as amended).
2. The Law of Ukraine “On the Fundamentals of State Supervision (Control) in the Field of Economic Activity” (Bulletin of the Verkhovna Rada of Ukraine, 2007, № 29, Article 389, as amended).

The new law establishes a mandatory share of liquid biofuels (bio-components) in the volume of automotive gasoline. Starting from May 1, 2025, the liquid biofuel content must be no less than 5% (by volume) with an absolute measurement tolerance of ± 1%.

This applies to all volumes of automotive gasoline supplied from wholesale fuel trade locations and retail outlets, except for gasoline with an octane rating of 98 or higher and gasoline supplied for the needs of the Ministry of Defense of Ukraine, the central executive body implementing state policy in the area of state material reserves, and for the creation of minimum stocks of oil and petroleum products.

The adopted changes will affect businesses involved in the production and/or import of fuel and/or wholesale fuel trade.

Additionally, starting from June 1, 2025, the liquid biofuel used to meet the mandatory share must comply with sustainability criteria. The responsibility for assessing biofuel content in gasoline and ensuring compliance with sustainability criteria is assigned to the State Energy Efficiency Agency of Ukraine. The procedure for administering the accounting of biofuel content in motor fuel and alternative motor fuel, as well as its compliance with sustainability criteria, will be approved by the Ministry of Infrastructure.

Efforts to stimulate bioethanol production by adopting a law mandating its addition to gasoline on the domestic market have been regularly made in Ukraine since 2003. The adoption of this law will bring Ukraine closer to EU standards, provide a boost to the production of advanced bioethanol, and contribute to the country’s progress towards “green” transformation, according to experts from the Bioenergy Association of Ukraine.

One of our Association’s areas of focus is supporting the “green course” in the fuel and energy business. We will continue to analyze the changes and share the details with you in future publications.